Chelsea-Yorkshire merger agreed by boards

The Boards of Yorkshire Building Society and Chelsea Building Society have agreed to merge, creating a society with assets of £35 billion.

With 2.7 million members and a national network of 178 branches, the merged society will be known as Yorkshire Building Society with the Chelsea Building Society name retained and operated as a separate and distinct brand within the Yorkshire.

The merger is subject to the approval of eligible members from both societies and confirmation by the FSA it is expected to complete on 1 April 2010.

The chief executive of the enlarged Society will be Iain Cornish, currently chief executive of Yorkshire Building Society. Ed Anderson, Yorkshire Building Society chairman, will remain as chairman. Stuart Bernau, Executive chairman of Chelsea Building Society, who has led the strategic review of Chelsea, will relinquish his board position immediately prior to the merger becoming effective.

Cornish said: “This merger creates a second major force in the building society sector. Joining with Chelsea offers a great opportunity to build on the strengths of both societies and form a strong